Microsoft Communications Sectortelecommunications | hosting | media & entertainment

Delivering Compelling Consumer Cloud Services with Service Providers

Knut AasrudGeneral Manager, Microsoft EMEA Communications SectorFebruary 9 2011

6 Million

181.8 Million

175 Million

691 Million

800 Million

5.3 Billion

10 Billion

Massive Addressable Consumer Market

Mediaroom subscribers - adding 4 subs every minute

Estimated number of Smartphones sold in EMEA in 2015

W7 copies sold - 7 copies every second of every day since launch

Active Mobile Gaming users WW

Daily users of social networking sites

Global Telco customer subscriptions

Wireless Internet Connected Devices by 2015 ~ Currently 2 Billion

Consumer Behavior Is Changing

3|

From watching…

to experiencing!

New entertainment experiences are more

interactive and social…they are

connected.

Video consumption is a given

Metered by use

Scalable

What is “consumer cloud” anyway?

*Do Consumers care about “Cloud”?

Experiences go with you, across locations and devices

Cloud makes key consumer scenarios richer…

*Do Consumers care about “Cloud”?

*

Imagine….

While online I can watch a cool movie trailer….Yes! It’s now on VOD

I can cue that up from my phone to watch later

And now I’ve got it on my big screen at home….

Avatar Kinect – Spring 2011

Multi-screen strategy enabled by Consumer Cloud Services

Working with Telcos/ Service Providers…

10

Productivity WindowsLive

Gaming Music Video Search

PC Data SubscriptionRe-sale

Data SubscriptionFree Cloud storage

Data SubscriptionXbox Gold subscription bounty

Data SubscriptionZunepassbounty

Data SubscriptionMedia centre Telco Ads insertsVOD revenue

SubscriptionSearch revenue share

Phone High Value Data subscription

DatasubscriptionApps rev shareFree Cloud storage

Data subscriptionXbox Gold subscription bountyGames rev share

DatasubscriptionZunepassbountyMusic rev share

Data subscriptionMobile TV monthly fee

Data subscriptionSearch revenue share

TV N/A N/A N/A N/A TV subscription TV ads insertsVOD revenue

N/A

Xbox N/A Datasubscription

Data subscriptionXbox Gold subscription bounty

Data subscriptionZunepassbounty

Data subscriptionTV subscription VOD revenue

N/A

Web Office Web Apps (free use)

Cost savings in R&D and Opex

Xbox Gold subscription bounty

Zunepassbounty

VOD revenueTV Ads inserts

Search revenue share

…working with Advertisers

69% of multi-screen consumers say that multi-screen makes content more useful and their media experience more relevant and informative

TV + Premium Online Video together improved message recall by 53%

Mediaroom Platform Update

12|

∙ Scale: 34 operators, serving 6M+ subscriber homes on ~13M TV’s∙ #1 IPTV platform according to Screen Digest

∙ Reach: Mediaroom 2.0 deployed, enabling over-the-top & Multi-screen

Microsoft Mediaroom Platform: TV across all Screens•Microsoft Mediaroom for

Xbox 360

•Microsoft Mediaroom for

Set-top Boxes (current)•Microsoft Mediaroom for

Set-top Boxes –

On Demand only

•Microsoft Mediaroom for

Windows Media Center

•Microsoft Mediaroom for

Silverlight

•Microsoft Mediaroom for

Windows Phones

TVPC

Mob

ile

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The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.